Updates for Tuesday 7/7/20

See FAQ for more explanations on terms, labels and abbreviations that we use. 
Below is a time-delayed excerpt from our live updates for members.

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Updates 10:57 AM EST - Tuesday 7/7/20
Short Term

• Target entry for TZA:  zone between 20.8 to 21.2

Updates 10:42 AM EST - Tuesday 7/7/20
Short Term
$VIX is rising back up.   

• Target entry for TZA:  zone between 21.2 and 21.6.  

Updates 10:32 AM EST - Tuesday 7/7/20
Short Term
While $VIX is dropping some amount, $VXN (Nasdaq volatility index) is steadily rising.  This is an important bearish divergence from $NDX rising, indicating that traders are nervous.

Additionally, market breadth shows a moderate net declining day for both NYSE and Nasdaq stocks.   Again this is a bearish divergence, as more stocks are being sold then bought.

We consider $NDX $SPX rise into the orange resistance zone as Thrust5 formation (of Bounce8).   We discussed this in our post at 12:45 AM today.   Keep in mind that Thrust5 is really stretching it, so take advantage of it to book your profit.

Updates 9:55 AM EST - Tuesday 7/7/20
Market price actions are unfolding pretty much as we projected in our 12:45 AM updates.

Short Term:  $VIX

• $VIX may retest the zone between 26 and 28 today.
• $VIX is forming a pattern indicating it is intending to rise in the short term after the retest.
• $VIX may rise up to the zone between 36 and 37 within the next few days.
• This means Bounce8 is likely to be done for $NDX $SPX IWM. 

Short Term:  $NDX $SPX

• $NDX $SPX may still attempt to rise into the new orange resistance zone.  However, sellers are likely to come out in force there.
• $NDX $SPX are approaching the end of Bounce8.
• We have been recommending that you take profit or tighten stops for $NDX $SPX positions.  Continue to do so.   It's time to exit Bounce8 positions.

Short Term:  IWM TZA
Yesterday we posted a few entry zones for TZA throughout the day.

At 9:41AM we wrote:

• TZA is on the move upward.   

• A retest of TZA near 20 is a low-risk high-reward setup to enter TZA.

At 12:45 PM we wrote:

• Target entry for TZA:  zone between 20.6  and 20.9

Some members day traded TZA, but some used these entry points to build up the position.   Congratulations!

If you are building TZA position today, look for.

• Target entry for TZA:  zone between 20.5 and 21.  
• Target exit for TZA:     <subscribe for this info>

​Updates 9:13 AM EST - Tuesday 7/7/20
Short Term Trades
The indices are gapping down this morning pre-market, and $VIX is climbing up.   We are not going to get the signal combination we were looking for as the ideal setup to enter short against $RUT IWM.

Here are updated signals to look for.

• If $VIX stays above 28, the selling will pick up for all indices.
• If $VIX drops below 28, it is unlikely to drop below 26.   
• If $VIX drops below 28, all indices will rise some amount.   But they are unlikely to exceed Monday's highs.

Updates 12:45 AM EST - Tuesday 7/7/20
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Here's a comment from one of our members who successful day traded using our signal at on Tuesday 7/7/20.

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SUBSCRIBE now and take advantage of our introductory low rate of just $39/month.   You get full analysis and signals in advance of your trading day.   You also get live intraday signal updates.   And you can cancel at any time.

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